FICO "08 - Credit Scores Improve Overall With Newest Version of FICO Scoring System

Although it got a late start, FICO '08 has now been rolled out by all three Credit Bureaus, Equifax was the last hold out.
It has been over 10 years since the last update.
Lenders have been anxiously awaiting the new scoring system because FICO advertised that using the new algorithm will decrease the number of defaulted loans by 5-15%.
FICO did not change the scoring range or the 5 scoring categories so you will not have to learn a whole new system.
FICO did change how they view certain items that go into your score in order to better predict when a creditor might default.
The biggest change to the way people use their credit will only impact a relatively small number of users.
Those people who have been put onto someone's credit as an 'authorized user' will no longer benefit from the official card holder's credit history.
It seems that unscrupulous credit repair companies were getting people with great credit to 'rent out' their credit histories to anyone who wanted to pay to become an authorized user.
Now the only people who can become authorized users must be related to the card holder.
While they can still be an authorized users, they will no longer get the benefit of the card holder's good credit history.
This change has a huge impact for new credit users like teenagers and for many spouses who do not have credit of their own.
So, does anyone get a break with this new system? The answer is yes.
Those with only one late will not be as severely impacted, also those with a good mix of credit will see more benefit from their good use of credit.
People who have multiple lates will see a more severe drop in their score as well as those with high balance to limit ratios.
There are mixed messages so far, but it seems that overall the new scoring system should help out both lenders and those with good credit.
It is those that are having credit issues that will feel the largest negative impact.